Flexible Contract in Perishable Products Supply Chain with Independent Option
This paper brings option trading into perishable products supply chain, with high demand uncertainties, long production lead-times and short selling period, and explores the application of independent option in flexible contract. Based on these, it develops a two-stage contract with independent option for a single manufacturer and two retailers, analyzes the decision process of retailer and obtains the retailers optimal order policy. Then it compares the contract model with nested-option contract, and finds out that independent option can increase retailers profit through option trading and the retailer will increase the quantity of options purchased while reduce the quantity of initial order. The unit price of traded option influences the retailers optimal order policy. With the increase of retailers profit and flexibility, the supply chains default and moral risk also increase.
perishable products supply chain independent option flexible contract
Yajing Wang Xiaojing Zhang
School of Management Northwestern Polytechnical University, Xian, 710072,China School of Economics Nagoya University Nagoya, 4648601, Japan
国际会议
昆明、丽江
英文
29-33
2011-04-15（万方平台首次上网日期，不代表论文的发表时间）